NEW YORK ( TheStreet) -- Cloud Peak Energy (NYSE: CLD) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 240.2% when compared to the same quarter one year prior, rising from $12.88 million to $43.82 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 23.1%. Since the same quarter one year prior, revenues rose by 16.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has increased to $84.31 million or 31.86% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 3.85%.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, CLOUD PEAK ENERGY INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
-- Written by a member of TheStreet RatingsStaff